China's Li says economic recovery fragile

China's premier says the basis of its economic recovery is still fragile and has promised to improve the investment climate for foreign companies.

Speaking at a business forum in the city of Dalian, Premier Li Keqiang said on Wednesday that China's economic fundamentals are stable but cautioned the global economy faced a "complex situation".

China's factory output and other activity improved in August after growth fell to a two-decade low of 7.5 per cent in the latest quarter. Analysts warn, however, that the rebound is underpinned by government spending and might not last.

Li also promised to press ahead with reforms aimed at making the economy more productive by opening markets wider to private and foreign competitors.